Allianz's Exchangeable-Bond Issue
Puts Firms on Notice to Perform

German insurer Allianz AG put its corporate holdings on notice to perform, launching a two billion euro ($1.77 billion) issue of bonds exchangeable into the shares of one of three major companies.

One of Europe's largest exchangeable bond issues ever, the offering marks one of the most serious steps taken to date to unravel corporate Germany's web of cross-shareholdings. With more stakes in German companies than any other, Allianz lies at its center. The German insurance giant has vowed for some time to shake up its massive...